A Sudden Increase in the U.S.price Level

question 44

Multiple Choice

A sudden increase in the U.S.price level

• A)makes creditors in dollars better off.
• B)makes creditors in dollars worse off.
• C)do not affect creditors in dollars.
• D)makes creditors in DM worse off.
• E)makes lenders worse off.

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Definitions:

Confederacy

A federation of southern states that seceded from the United States from 1861 to 1865, leading to the American Civil War.

Paper Money

Currency made from paper that is officially issued by a government and circulated within its economy.

Wade-Davis Bill

Radical Republicans’ 1864 plan for Reconstruction that required loyalty oaths, abolition of slavery, repudiation of war debts, and denial of political rights to high-ranking Confederate officials; President Lincoln refused to sign the bill.

Loyalty Oath

An oath or pledge affirming one's allegiance to a state or nation, often required by governments of its employees or members of its military forces.